Thursday, April 20, 2017
Three Short Term Benefits To Filing Bankruptcy
Filing for bankruptcy is a good way to get rid of overwhelming debt, or at least have it reduced to a manageable amount. The purpose behind filing a case is to eliminate what debt can be eliminated, or have it reduced so that you are left with a debt load that is not more than your income. Bankruptcy gives you a fresh financial start, and that can be helpful when you have more on your plate than can be managed. The benefits of filing a case can be long lasting, because once you have less to pay, you can start saving so when an emergency comes up you do not have to rely on loans or credit cards to cover expenses. Along with this long term benefit, there are also some short term benefits that you will feel immediately.
Three of these short terms benefits include:
• An immediate stop to any pending collection or foreclosure action against you. This means if you are being sued for a past due debt, that lawsuit has to be stopped the instant you file a bankruptcy. So if a foreclosure sale is fast approaching, you can stop that sale and take the time you need to gather yourself and come up with a plan to save your house.
• If your wages are being garnished, the garnishment has to be withdrawn. This means no more extra funds will be taken out of your check and you can once again receive full pay for the work you do.
• Your creditors are not allowed to contact you once you file bankruptcy, and this stop in calls and letters can really relieve a lot of stress.
These benefits are immediate, due to the imposition of the automatic stay. The automatic stay is a legal mechanism that is put in place the instant you file a bankruptcy case. Now it does take a day or so for your lenders to be notified by the Court that you have filed, so if you get a call or receive a letter in the meantime you are authorized to give your case number to the lender and cease communications at once. You can also provide any lenders that persist in contacting you with your attorney’s name and phone number, and report to your attorney that certain creditors re not abiding by the automatic stay. If the behavior on the part of your lender is egregious enough, you can also bring an action within your bankruptcy case for their violation of the automatic stay.
If you have more questions about bankruptcy, contact us at www.law-ri.com. We will help by coming up with solutions that work for you and have multiple locations to meet your needs for office visits.